(Washington, February 2) – Ranking Member Edward J. Markey (D-Mass.) and House Small Business Committee Ranking Member Nydia Velázquez (D-N.Y.-7) today condemned the actions of the Small Business Administration (SBA) after it announced that small businesses with legal permanent residents will be barred from receiving SBA loans.

On December 19, SBA announced that it would allow 5% of a business to be owned by foreign nationals but singled out Chinese citizens as ineligible individuals with little explanation. SBA’s new policy notice rescinds SBA’s December notice and bars any small businesses with owners that are green card holders from receiving an SBA loan, effective March 1.

“The Trump administration is stoking the flames of hatred, spreading fear and confusion among immigrants and small business owners. Rather than support hard-working legal immigrants to start or expand a business, the Trump SBA is choosing hatred by barring green card holders from receiving an SBA loan. The Administration’s message to immigrants is clear: you are not welcome to pursue the American Dream,” said Ranking Members Markey and Velázquez.

As Ranking Members Markey and Velázquez are fighting for small business owners and immigrants that rely on SBA loans to start and run their businesses, create jobs, and contribute to their local communities.

  • In July, Ranking Members Markey and Velázquez sent a letter to the SBA expressing serious concerns with the agency’s new, draconian citizenship verification requirements that require small businesses seeking SBA loans to be 100% owned by U.S. citizens, nationals, and legal permanent residents.
  • In September, Ranking Member Markey heard directly from SBA lenders about the issues with the citizenship verification requirements.
  • In December, Ranking Member Markey and all Democratic members of the Senate Small Business Committee sent a letter to the SBA reiterating concerns with the citizenship requirements and highlighting a drop in SBA lending volume. Despite documented concerns from SBA lenders and borrowers about the citizenship requirements, SBA has not responded to either letter.

###